In recent years, entrepreneurship has become a powerful force for growth in emerging economies. What’s even more promising is the significant participation of women entrepreneurs in this economic wave.
A recent report by the Global Entrepreneurship Monitor revealed that 17% of working-age women in developing countries are already running their businesses, and another 35% aspire to do the same.
This rate is notably higher than in high-income developed nations, where only 9% are actively engaged in entrepreneurship, and 14% aspire to become entrepreneurs.
This trend reflects the fact that women in emerging economies see entrepreneurship as a path to a brighter future, not only for themselves but also for their families and communities.
India is a prime example of this positive shift, with 14% of entrepreneurs being women, and more than 20% of the MSME (Micro, Small, and Medium Enterprises) sector being women-led businesses.
As the world’s fifth-largest economy and boasting the third-largest startup ecosystem, India’s entrepreneurial ambitions are poised to accelerate like never before, with women increasingly taking their place as equal partners in this journey.
Exploring the Women-Led Entrepreneurship Trend
Women entrepreneurs in India are making their mark in a wide range of sectors, including education, healthcare, e-commerce, retail, fashion, and technology.
They are injecting fresh ideas and approaches into traditional industries like handicrafts and are also making significant strides in technology-driven sectors, where women already form a substantial portion of the workforce.
The positive impact of women entrepreneurs goes beyond their participation. Their exceptional work ethic and business acumen have led them to excel in the entrepreneurial sphere, driving performance and growth.
According to a survey by Bain & Company, startups led by women deliver a remarkable 35% higher return on investment (ROI) compared to those led by men.
Women’s empathetic and collaborative leadership styles enable them to effectively motivate their teams and achieve results, particularly in business activities reliant on interpersonal relationships.
As primary household managers, responsible for most purchasing decisions, women have an acute understanding of the importance of financial stability and prosperity for their families.
This motivation has driven many women, especially in rural India, to embrace entrepreneurship as a means to provide financial security for their families and, in many cases, lift them out of poverty.
Moreover, women-led businesses are providing employment to a staggering 22-27 million individuals, improving the financial circumstances of numerous families and making a substantial contribution to job growth and the overall economic development of the nation.
Boosting Women-Led Entrepreneurship
There are measures that policymakers, investors, and other stakeholders can take to create a more supportive environment for women entrepreneurs in India and other emerging economies, unlocking their full potential to drive growth.
• Systemic Interventions: Addressing policy constraints and implementing regulatory and policy reforms will expand women entrepreneurs’ access to capital, markets, and industry networks.
Public and private sector investments will also play a crucial role in supporting female business leaders through specialized programs.
• Empowering Women in Male-Dominated Sectors: Many high-growth sectors, especially technology-centric ones like ICT, tend to be male-dominated.
Targeted initiatives such as training programs, incubators, and accelerators can bridge this gender gap, resulting in increased job growth, innovation, and improved product and service delivery.
• Increasing Women Investors: Women investors are more likely to invest in women-led businesses.
Therefore, increasing the representation of women investors in VC firms, private equity funds, and banks will provide a significant boost to women-led entrepreneurship.
Towards a More Prosperous and Equitable Business Landscape
A report by Bain & Company and Google predicts that women-led entrepreneurship has the potential to create 150-170 million job opportunities in India by 2030.
With the right support, skill development, and resources, female business leaders can usher in a new era of inclusive and equitable growth across every sector of the economy. This not only benefits women entrepreneurs but also contributes to the overall prosperity of emerging economies.
Women entrepreneurs are playing a pivotal role in driving economic growth and innovation in emerging economies.
By addressing challenges and implementing supportive measures, we can empower these talented women to reach their full potential, creating a brighter and more equitable future for all.
